Morgan Stanley Raises Israel Ranking; Investor Guide to Opportunities (CEF ISL; ALDN, CHKP, FNDT, GIVN, MAGS, RDWR, TEVA, ESLT)

According to Globes, Morgan Stanley raised its recommendation on Israeli domestic equities to Overweight and reduced its recommendation for tech stocks to Neutral. Morgan Stanley analysts wrote that the Israeli market is "the cheapest on a forward, risk adjusted basis...We are thinking that the market will move back to an 'ERP and value' based framework as a correction, as opposed to the 'IRR and growth' theme that has driven market since October."

Morgan Stanley analyst Serhan Cevik discussed the rise of the Hamas and the upcoming election in Israel:

Without a proper institutional architecture, elections alone do not guarantee democracy... Thus, investors must be vigilant in analysing the implications of the overwhelming rise of a party that is still considered as a “terrorist organisation